Which Refinancing Loan Program is Right for You?
Even though it may seem like it sometimes, there are not as many loan options as there are borrowers! We can guide you to find the loan program that can fit your financial situation the best. Call us at 702-524-1376 to get things started. What are your goals for your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, a good option might be a low fixed-rate loan. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. This is especially a wise option if you don't think you will move within the next 5 years or so. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Cashing Out
Are you wanting to cash out some of your equity in your refinance? Your home needs updating; your daughter has gone to University and needs tuition; or you are planning a special vacation. With this in mind, you'll want to look for a loan higher than the remaining balance on your present mortgage.With this goal, you'll want If you've had your current mortgage for quite a while and/or have a loan with a high interest rate, you may be able to do this without making your monthly payment higher.
Consolidating Your Debt
Do you want to pull out a portion of your equity to consolidate additional debt? Good idea! If you have a fair amount of equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of money each month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while beefing up your home equity faster? In that case, you need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. The payments will likely be more than with a long-term mortgage, but in exchange, you will pay considerably less interest and will build up equity more quickly. Conversely, if your existing long-term mortgage loan has a small remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at 702-757-6874. We are here to help you reach your goals!
Curious about refinancing? Call us at 702-524-1376.